🧠 CATEGORY 1: PRE-APPROVAL POWER
This is the difference between a prequalification and a preapproval.
What is documentation + credit review?
You don’t need this percentage to buy a home.
👉 Answer: What is 20% down?
This determines market value for the lender.
👉 Answer: What is an appraisal?
This impacts payment more: rate change or small purchase price change?
👉 Answer: What is rate change?
This should happen before a buyer writes an offer.
👉 Answer: What is speaking with a lender?
This document makes your offer stronger because it shows income, assets, and credit have been reviewed.
👉 Answer: What is a fully underwritten preapproval?
This loan allows as little as 3% down.
👉 Answer: What is conventional?
If the appraisal comes in low, this is one solution.
👉 Answer: What is renegotiating or bringing cash to close?
This strategy lowers the interest rate for the first few years.
👉 Answer: What is a temporary buydown (2-1, 3-2-1)?
This document is required when using gift funds.
👉 Answer: What is a gift letter?
This is the #1 thing that can kill a deal after preapproval.
👉 Answer: What is new debt / major credit changes?
This loan allows 3.5% down with flexible credit guidelines.
👉 Answer: What is FHA?
This can eliminate the need for an appraisal altogether.
👉 Answer: What is an appraisal waiver?
This is the cost of borrowing expressed as a percentage.
👉 Answer: What is an interest rate?
Self-employed borrowers are typically qualified using this.
👉 Answer: What are tax returns?
This allows a buyer to compete with cash in some markets.
👉 Answer: What is an appraisal waiver?
This loan allows 0% down for eligible veterans.
👉 Answer: What is VA?
This is the main factor in how long appraisals take.
👉 Answer: What is appraiser availability / market volume?
If buyers wait for rates to drop, they risk this.
👉 Answer: What is higher purchase prices / more competition?
This can fix minor credit score issues quickly before closing.
👉 Answer: What is a rapid rescore?
This is why calling the lender before accepting an offer matters.
👉 Answer: What is verifying assets, employment, and true buying power?
This type of fund can be used for down payment if documented properly with a letter.
👉 Answer: What is a gift?
This type of property often has additional lender review requirements.
👉 Answer: What is a condo?
This strategy allows buyers to refinance later if rates improve.
👉 Answer: What is “date the rate, marry the house”?
This is why communication between agent and lender is critical.
👉 Answer: What is preventing surprises and keeping the deal on track?